Volkswagen Plans Low Cost Cars Under New (Or Old?) Brand

After rumors from Renault and announcements by Nissan, Volkswagen lifted the skirt on its plans for the ultra-low-cost segment. Volkswagen wants to build cars for the €5,000 to €7,000 ($6,600 to $9,200) price bracket, development chief Ulrich Hackenberg told Germany's auto motor und sport. For a long time, Volkswagen execs and engineers were horrified by low cost cars. They were worried that this could cheapen a brand that had been laboriously "up-positioned" over many model generations. Therefore, the cheap skates will be sold under a new brand, Hackenberg says. It is refreshing to see that Volkswagen finally got religion. After many years of trying to sell high priced small cars, Volkswagen now has realized that the key to emerging markets is to sell a lot of car for a low price. Hackenberg thinks of a three box car, "and you can turn that easily into a van. It needs to offer a lot of space." It will be interesting to see what brand Volkswagen will chose. It has a lot of dormant brands on file. NSU? DKW?   from The Truth About Cars http://www.thetruthaboutcars.com

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